§ 3102-e. Emerging technology industrial classifications. 1.
Definitions. As used in this section:

(a) "Department" shall mean the New York state department of taxation
and finance.

* (b) "Emerging technologies" shall mean:

(1) advanced materials and processing technologies that involve the
development, modification, or improvement of one or more materials or
methods to produce devices and structures with improved performance
characteristics or special functional attributes, or to activate, speed
up, or otherwise alter chemical, biochemical, or medical processes. Such
technologies shall include, but not be limited to, the following: metal
alloys, metal matrix and ceramic composites, advanced polymers, thin
films, membranes, superconductors, electronic and photonic materials,
bioactive materials, bioprocessing, genetic engineering, catalysts,
waste emissions reduction and waste processing technologies;

(2) engineering, production, and defense technologies that involve
knowledge-based control systems and architectures, advanced fabrication
and design processes, equipment, and tools, or propulsion, navigation,
guidance, nautical, aeronautical and astronautical ground and airborne
systems, instruments, and equipment. Such technologies shall include,
but not be limited to, the following: computer-aided design and
engineering, computer-integrated manufacturing, robotics and automated
equipment, integrated circuit fabrication and test equipment, sensors,
biosensors, signal and image processing, medical and scientific
instruments, precision machining and forming, biological and genetic
research equipment, environmental analysis, remediation, control, and
prevention equipment, defense command and control equipment, avionics
and controls, guided missile and space vehicle propulsion units,
military aircraft, space vehicles, and surveillance, tracking, and
defense warning systems;

(3) electronic and photonic devices and components for use in
producing electronic, optoelectronic, mechanical equipment and products
of electronic distribution with interactive media content. Such
technologies shall include, but not be limited to, the following:
microprocessors, logic chips, memory chips, lasers, printed circuit
board technology, electroluminescent, liquid crystal, plasma, and vacuum
fluorescent displays, optical fibers, magnetic and optical information
storage, optical instruments, lenses, and filters, simplex and duplex
data bases, and solar cells;

(4) information and communication technologies, equipment and systems
that involve advanced computer software and hardware, visualization
technologies, and human interface technologies. Such technologies shall
include, but not be limited to, the following: operating and
applications software, artificial intelligence, computer modeling and
simulation, high-level software languages, neural networks, processor
architecture, animation and full-motion video, graphics hardware and
software, speech and optical character recognition, high-volume
information storage and retrieval, data compression, broadband
switching, multiplexing, digital signal processing, and spectrum
technologies; and

(5) biotechnologies, which shall be defined as technologies involving
the scientific manipulation of living organisms, especially at the
molecular and/or the sub-molecular genetic level, to produce products
conducive to improving the lives and health of plants, animals, and
humans; and the associated scientific research, pharmacological,
mechanical, and computational applications and services connected with
these improvements. Activities included with such applications and
services shall include, but not be limited to, alternative mRNA
splicing, DNA sequence amplification, antigenetic switching,
bioaugmentation, bioenrichment, bioremediation, chromosome walking,
cytogenetic engineering, DNA diagnosis, fingerprinting, and sequencing,
electroporation, gene translocation, genetic mapping, site-directed
mutagenesis, bio-transduction, bio-mechanical and bio-electrical
engineering, and bio-informatics; and

(6) remanufacturing technologies, which shall be defined as processes
whereby eligible commodities are restored to their original performance
standards and are thereby diverted from the solid waste stream,
retaining the majority of components that have been through at least one
life cycle and replacing consumable portions to enable such commodities
to be restored to their original functions. For the purposes of this
subdivision, "eligible commodities" shall mean commodities (excluding
paper) used in conjunction with or as a part of equipment performing the
functions of facsimile machines, photocopiers, printers, duplication
equipment, or any combination thereof, including, but not limited to the
following: magnetic ink character recognition cartridges, photo
conductor assemblies, electrostatic cartridges, thermal imaging
cartridges, toner cartridges, ink jet cartridges, and printer
cartridges. Provided further, that "eligible commodities" shall also
include equipment used to record single frame images on film, where such
equipment and film are marketed and sold as a single integrated consumer
product, and where such equipment and film may be submitted in whole to
a photograph processor for the purposes of processing.

* NB Applies to taxable years beginning on or after January 1, 2001

(c) "Qualified emerging technology company" shall mean a company
located in New York state: (1) whose primary products or services are
classified as emerging technologies and whose total annual product sales
are ten million dollars or less; or (2) a company which has research and
development activities in New York state and whose ratio of research and
development funds to net sales equals or exceeds the average ratio for
all surveyed companies classified as determined by the National Science
Foundation in the most recent published results from its Survey of
Industry Research and Development, or any comparable successor survey as
determined by the department, and whose total annual product sales are
ten million dollars or less.

The definition of "research and development funds" shall be the same
as that used by the National Science Foundation in the aforementioned
survey.

2. The New York state science and technology foundation shall prepare
a report, no later than March thirty-first, two thousand four, analyzing
the effectiveness of the tax credits created by subdivisions twelve-E
and twelve-F of section two hundred ten of the tax law, in light of
their influence on the start-up, growth, and retention of emerging
technology companies in the state, on job growth within high technology
companies, and on the expansion of collaborative research and
development undertaken by industry and academia. The department shall
annually provide the New York state science and technology foundation
with aggregate statistics, pursuant to existing legal requirements for
confidentiality of taxpayer records, on the number of taxpayers applying
for such credits, the number of employees employed full time by
qualified emerging technology companies, and the total amount and the
amount of incremental basic research payments, made to a qualified
organization. This report shall be delivered to the governor, the
speaker of the assembly, the temporary president of the senate, and the
chairpersons of the assembly committee on economic development, job
creation, commerce and industry and the senate committee on commerce,
economic development and small business.